This study shall look at how the medical education process affects the distribution of physicians across specialties; both in terms of the personal characteristics of those accepted by medical schools, and how the different dimensions of medical school education affect specialty choice directly. The economic model is designed to predict the probabilities that specified types of physicians will make the various specialty choice decisions. This will enable health system planners to forecast the numbers of new entrants to various specialties on the basis of observable characteristics of medical school populations. The project will involve an analysis of a random data sample of U.S. physicians to determine if the economic model is correctly specified, and which variables- including potential or actual policy instruments-affect the distribution of physicians across specialties. Previous studies of specialty and/or locational distribution of physicians have neglected the simultaneity of the specialty-choice specialty-wage relationship. This simultaneity would imply that the often-demonstrated conclusion that specialty wages do not influence specialty choice, is a statistical artifact, and is not expected in a simultaneous model of doctors' specialty distribution. In addition, previous studies of mean specialty wages, or specialty predict what a physician would earn had he or she ended up in a specialty other than the one in which they are observed. My econometric model is designed to overcome this 'selectivity bias'. The primary hypothesis to be tested is that specialty income has a positive effect on specialty choice. The results of this test will be directly relevant to the design of policies to correct perceived imbalances in specialty distribution.